Glossary

CP49 Notice

0:00 0:00

100

The CP49 notice is sent by the IRS to notify taxpayers that their current-year refund has been applied to a prior-year tax debt. This notice explains how much of the refund was used to satisfy the previous year’s balance.

Key points about CP49:

The notice provides a breakdown of the refund amount and how much was applied to the prior year’s debt.
It specifies the remaining balance, if any, and provides instructions on how to handle any remaining debt.
Taxpayers should review the notice carefully to verify the accuracy of the offset and contact the IRS if they believe the refund was incorrectly applied.

CP49 notices are issued when the IRS applies a taxpayer’s refund to previous tax liabilities, reducing or eliminating the refund amount.

Recommendation

Form 8911 – Alternative Fuel Vehicle Refueling Property Credit

Form 8911 is used to claim the Alternative Fuel Vehicle Refueling Property Credit on your tax return.

Form 4952 – Investment Interest Expense Deduction (highlighted earlier under investment categories)

Form 4952 helps taxpayers claim deductions for investment interest expenses incurred during the tax year.

Form 8919 – Uncollected Social Security and Medicare Tax on Wages

Form 8919 addresses uncollected Social Security and Medicare taxes on wages.

Form 8862 – Information to Claim Certain Credits After Disallowance

Form 8862 is crucial for claiming tax credits after disallowance, ensuring compliance and maximizing tax benefits.

Earned Income Credit (EIC)

The Earned Income Credit (EIC) is a refundable tax credit for low- and moderate-income earners, helping reduce their tax liability and providing a possible refund.

CP71C Notice: Annual Reminder of Balance Due on Tax Debt

IRS CP71C Notice serves as an annual reminder to taxpayers that they have an outstanding balance due on their tax debt and provides payment instructions.

CP03 Notice

IRS CP03 is sent to notify taxpayers that their tax return is being processed, providing details on the expected refund timeline.

Form 4797 – Sales of Business Property (common in farm-related transactions)

Form 4797 is vital in farm transactions, reporting the sales of business property for tax purposes.

Form 3520-B – Annual Return for Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts

Form 3520-B is an annual return for transactions with foreign trusts and receipt of certain foreign gifts.

CP508C Notice

IRS CP508C notifies taxpayers that their passport eligibility is in jeopardy due to seriously delinquent tax debt and provides steps to resolve the issue.